The BALANCE OF PAYMENTS is a systematic record of all financial transactions between the residents, including the Government, of one country and those of other countries. The BALANCE OF PAYMENTS is said to be ADVERSE (in deficit) if payments abroad exceed receipts from abroad. It is said to be FAVOURABLE (in surplus) if receipts are in excess of payments. The item which mostly influences a deficit or surplus position is the net payment or net receipt on account of goods and services. A deficit in the BALANCE OF PAYMENTS, which represents a temporary imbalance, is usually financed by drawing down the country's foreign exchange reserves and is supplemented, if necessary, by short term external borrowing. A more fundamental deficit, one which is persistent and severe, requires corrective measures aimed at increasing output and exports and reducing imports in respect of goods and services, since over a given period we may import more goods and services than we export, the Central Bank maintains a RESERVE OF FOREIGN EXCHANGE to cover any temporary imbalance. This FOREIGN EXCHANGE RESERVE is maintained in the form of international trading currencies such as Sterling and US dollars or investments in such currencies held with the Central Bank's correspondents abroad.

The EXCHANGE CONTROL AUTHORITY in Barbados is the Minister of Finance. However, the Minister of Finance has delegated much of his authority to the Central Bank of Barbados, which sees that the provisions of the EXCHANGE CONTROL ACT, CAP 71 are carried out. The Central Bank in turn, delegates some of its authority to Authorised Dealers and Authorised Depositaries. 

AUTHORISED DEALERS assist the Central Bank by handling most of the transactions made in foreign currencies or gold bullion. Only AUTHORISED DEALERS may legally hold and deal in foreign currencies and gold bullion. They act on behalf of the Central Bank and must submit returns to the Central Bank on whatever transactions they carry out. Barbadians may accept foreign currency in return for goods and services. However, they cannot legally exchange that currency for Barbados dollars or any other currency except through an AUTHORISED DEALER. See list of AUTHORISED DEALERS and AUTHORISED DEPOSITARIES. 

No, unless permission has been obtained from the Central Bank. All persons resident in Barbados must hand over to an Authorised Dealer as soon as possible, all FOREIGN CURRENCY or GOLD BULLION which comes into their possession for conversion into local currency at prevailing rates of exchange.  In instances where the holder has a foreign currency account (link to circular #5), this foreign currency can be deposited to their account.

By FOREIGN CURRENCY, we mean the currency of a country other than Barbados. It includes notes and coins, cheques, drafts, money orders, bills of exchange, letters of credit and balances with foreign banks. Barbados dollars credited to or held in an External Account with an Authorised Dealer are treated on the same basis as FOREIGN CURRENCY.

GOLD BULLION is unwrought gold, usually in the form of ingots. Dealings in gold come under the same regulations as dealings in foreign currencies. The importation of gold requires Exchange Control permission. Such permission is normally given to those using gold in the manufacture of jewellery and for other industrial purposes. Residents are not allowed to hold GOLD BULLION; gold coins of foreign countries may be held for numismatic purposes only. Gold coins issued by the Central Bank of Barbados are, of course, legal tender in Barbados and may be used in the settlement of transactions and debts.

SECURITIES are defined in the Exchange Control Act Cap. 71 as shares, stocks, bonds, notes (other than promissory notes), debentures, debenture stock, treasury bills, units in a unit trust scheme, and shares in an oil royalty. SECURITIES denominated in foreign currencies are designated "FOREIGN CURRENCY SECURITIES".

There are NO RESTRICTIONS on transactions between residents of Barbados in respect of SECURITIES denominated in Barbados dollars. 

However, the transfer of a Barbadian dollar security from a resident to a non-resident, or vice versa, requires Central Bank of Barbados’ permission. 

Similarly, Central Bank’s permission is necessary where local companies issue SECURITIES denominated in Barbados dollars to non-residents. In the case of FOREIGN CURRENCY SECURITIES, purchase or sold by residents can only be made with permission of the Central Bank of Barbados.

In all cases where Central Bank’s permission is required, it should be sought by letter.  Residents must deposit Certificates of Title to FOREIGN CURRENCY SECURITIES with an Authorised Depositary in Barbados or with his agent abroad. No person whether a resident or non-resident may buy, sell or otherwise deal in FOREIGN CURRENCY SECURITIES in Barbados except through an Authorised Depositary.

Yes, since February 28, 1974 when the Exchange Control Act, CAP 71 was amended to do away with the distinction between what were known as "Scheduled Territories" or, more commonly "the Sterling Area", and the rest of the world. As a result, transactions with residents of any country other than Barbados (referred to as non-residents) are subject to Exchange Control regulations.

For Exchange Control purposes, RESIDENTS are defined as: 

1. Barbadian nationals residing in Barbados, studying abroad or temporarily working abroad. 
2. Nationals of other countries who have continuously resided in Barbados for at least three years and who are not on work permit;
3. Firms and companies, or their branches, established or operating in Barbados. 

All others are NON-RESIDENTS and include:

• Barbadian nationals permanently resident outside of Barbados
• Other nationals studying in Barbados; and
• Expatriate employees of Embassies, Legations, Consulates, High Commissions and international organisations.

If you are not sure of your residential status for Exchange Control purposes, please consult an Authorised Dealer or the Foreign Exchange & Fund Management Department of the Central Bank of Barbados.

An EXTERNAL ACCOUNT is an account held in Barbados dollars with an Authorised Dealer in Barbados in the name of a non-resident.

Yes, if such foreign nationals have not resided continuously in Barbados for at least three years. However, their external accounts are treated differently from other External Accounts. For example, general permission has been granted to authorised dealers for net salaries earned by such foreign nationals to be credited to their accounts. 

A FOREIGN CURRENCY ACCOUNT is an account denominated in a currency other than Barbados dollars e.g. U.S. or Canadian dollars. A resident, whether an individual or firm, a company, an association or institution, who wishes to open a FOREIGN CURRENCY ACCOUNT, must apply to an Authorised Dealer.  The full amount of funds brought into Barbados by residents and non-residents can be maintained on their account. Payments from FOREIGN CURRENCY ACCOUNTS may be made without reference to the Central Bank of Barbados.

Subject to Central Bank’s approval, residents may also maintain FOREIGN CURRENCY ACCOUNTS with banks abroad, provided that Authorised Dealers in Barbados are not in a position to service such accounts. The Authorised Dealer forwarding the application must justify why such an account is necessary. 

As long as the goods to be imported are covered by general or specific licence approved by the Minister of Trade, a local importer may freely obtain foreign currency for payment to an overseas supplier. However, before purchasing the foreign currency, an application must be made via Forex Online using FORM FC(1).  The appropriate invoice and Customs warrant as proof that the goods have landed in Barbados and have been cleared by the Customs Authority must be submitted. 

When advance payments have to be made before the foreign supplier will ship the goods, permission via Forex Online to purchase foreign currencies is required. 

A CREDIT CARD is an instrument issued by an institution or its agent to an individual who then enjoys credit facilities to the extent of the limit agreed upon between the issuer and the CREDIT CARD holder. The CREDIT CARD holder may use these facilities in acquiring cash, goods or services in other parts of the world. 

A DEBIT CARD is an instrument issued by an institution to an individual that is linked to an account and may be used to make payments for goods and services. 

Residents are permitted to use CREDIT and DEBIT CARDS for travel services abroad to the extent of their authorised travel allowances; that is, BBD20,000 per person for holiday travel and for business travel, there is an allowance for BBD60,000 per calendar year or BBD1,000 per day. 

Where the stated allowances are exhausted, permission for replenishment or an increase must first be sought from the Central Bank of Barbados using the CD Form through Forex Online. 

NON-RESIDENTS may use locally issued credit cards on condition that the balance be maintained on an External Account or Foreign Currency Account to cover claims against the credit card.

Persons travelling abroad on holiday are allowed to purchase foreign currency up to the equivalent of BBD20,000 per person per calendar year. Barbadian residents travelling abroad on business are allowed to purchase foreign currency (at the rate of BBD1,000 per day) or BBD60,000 within a year.  Individuals may travel with cash up to a limit of the equivalent of BDS$2,500 per person per trip. You are required to present a return ticket or approved travel documents. Business persons must, in addition, present a letter from their employer confirming that they are travelling abroad on business on behalf of the company. If you require more foreign currency for your trip than stipulated above, used up your travel allowance for the calendar year, or if you plan to combine private and business travel you must complete an application on Form FC (Not for Imports) for submission to the Central Bank of Barbados through Forex Online. Do not wait until the last minute before you try to obtain your foreign currency, this submission must be made within 30 days of travel. 

If non-residents are meeting their travel expenses through an External Account, a Foreign Currency Account, or from funds which they had originally brought into Barbados, Authorised Dealers are permitted to sell them foreign currency for travel purposes to the limit of such amounts.

An application should be completed and submitted on Form FC (Not for Imports) via Forex Online.

Authorised Dealers have authority to approve remittances by residents without limit per person per academic year for maintenance of CHILDREN and DEPENDANTS who are BEING EDUCATED ABROAD, subject to: 

1. Documentation showing that the dependant has been accepted at a SCHOOL or UNIVERSITY ABROAD 
2. Documentation indicating the fees and charges for tuition; 
3. Documentary evidence of living expense abroad; and 
4. Some indication of reasonable expenses with respect to books and other incidentals. 

Applications for the full amount for correspondence courses, (including the cost of books, apparatus and enrolment fees), accompanied by the relevant documentation should be submitted for approval using Form FC (Not for Imports) via Forex Online.

Central Bank of Barbados permission is required when travelling abroad to take Barbados Notes out on their person. Both residents and non-residents travelling abroad may take with them on their person up to the equivalent of BDS$2,500 in FOREIGN CURRENCY NOTES and COINS as part of their approved annual travelling allowance of BDS$20,000. The remainder may be taken in the form of drafts on foreign banks or other approved monetary instruments. Visitors, of course, are allowed to take out any foreign CURRENCY NOTES which they originally brought with them into Barbados.

There is no prohibition on any foreign CURRENCY into Barbados. Remember, however, that if you are a resident, you should surrender as soon as possible, any foreign CURRENCY which you may bring back from abroad to an Authorised Dealer for exchange into Barbados dollars.  The exception to this relates to persons holding foreign currency accounts. 

The Central Banks of Jamaica and Guyana have requested that under no circumstances should Jamaica and Guyana CURRENCY notes be encashed outside of their respective territories. E.C. dollar notes are freely exchanged by Authorised Dealers. It should also be noted that currency notes of Trinidad & Tobago are not currently exchanged by Authorised Dealers in Barbados.

Yes. For a detailed list of other categories, see circular 18.

Residents seeking to make investments abroad require the permission of the Central Bank of Barbados.

Residents seeking to borrow abroad require the permission of the Central Bank of Barbados.

NON-RESIDENTS are allowed to bring foreign exchange INTO BARBADOS through a financial institution, to engage in lawful business or invest in Real Estate, Loan Capital or Equity

To register foreign funds, NON-RESIDENTS should take the following steps:

• If not being handled personally by the foreign investor, a representative should be selected at this point. This is usually an attorney or the Authorised Dealer in receipt of the funds transferred to Barbados. The Authorised Dealer in receipt of the funds transferred, should provide the applicant with the Credit Advice(s) or applicable document(s) showing the receipt of foreign funds into a local account (indicating the equivalent in BDS$), or a foreign currency account. 
• The aforementioned along with any documents detailing the investment or otherwise supporting the transaction (e.g. Purchase Agreement, Loan Agreement, Articles of Incorporation, etc.) should be submitted for consideration to the Central Bank of Barbados.
• Once the funds have been registered, the applicant will receive an electronic approval of the Form FI for his or her records. This record of approval should be retained and presented to the Central Bank of Barbados at the time of application for repatriation.
• Applications for repatriation of foreign funds should be submitted on Form FC (Not for Imports) to the Central Bank of Barbados via Forex Online. 
• Repatriation of capital, profits and dividends accruing to owners or shareholders may also be remitted on presentation of evidence from the relevant sources. 

Permission is required from Central Bank of Barbados for the purchase of REAL ESTATE situated in Barbados. Such permission is usually granted when the NON-RESIDENT purchaser remits funds into Barbados to cover the entire cost of the property concerned. The purchase price must be paid and received in Barbados. NON-RESIDENTS are not normally allowed to borrow for financing such purchases. 

However, Barbadian nationals, even though they may be NON-RESIDENTS, are given permission to borrow in Barbados to acquire residential property.

NON-RESIDENTS and firms or companies controlled either directly or indirectly by NON-RESIDENTS require Central Bank’s permission to BORROW or to obtain credit or mortgage loans from a LOCAL source.

Transfer of LEGACIES and inheritances due to beneficiaries who were NON-RESIDENTS at the time of death of the benefactor is permitted on the presentation of the relevant documentation. An application on Form FC (Not for Imports) should be submitted to the Central Bank of Barbados via Forex Online along with the following:

1. Copy of will and Letters Testamentary or Letters of Administration
2. Certificate of Clearance
3. Sale Agreement*
4. Property Transfer Tax Receipt*
5. Statement of Account*

(*) These documents relate to where the sale of property is involved as part of the transaction. 

There are NO RESTRICTIONS on transactions between residents of Barbados in respect of SECURITIES denominated in Barbados dollars. However, the transfer of a Barbadian dollar security from a resident to a non-resident, or vice versa, requires Central Bank of Barbados’ permission. Similarly, Central Bank’s permission is necessary where local companies issue SECURITIES denominated in Barbados dollars to non-residents. In the case of FOREIGN CURRENCY SECURITIES, purchase or sold by residents can only be made with permission of the Central Bank of Barbados. If a resident already holds FOREIGN CURRENCY SECURITIES registered in Sterling Area countries prior to March 1, 1974 or is already in possession of FOREIGN CURRENCY SECURITIES on becoming a resident, permission for retention of such securities should be sought from Exchange Control without delay. In all cases where Central Bank’s permission is required, it should be sought by letter in duplicate.Residents must deposit Certificates of Title to FOREIGN CURRENCY SECURITIES with an Authorised Depositary in Barbados or with his agent abroad. No person whether a resident or non-resident may buy, sell or otherwise deal in FOREIGN CURRENCY SECURITIES in Barbados except through an Authorised Depositary.

Barbadian nationals EMIGRATING to take up permanent residence abroad are allowed an initial remittance of BDS$250,000.00 for a family unit per annum. On the anniversary date of the initial approval, further remittances can be made at a rate of BDS$100,000 per annum. For this purpose, an application on Form FC (Not for Imports) must be submitted to the Central Bank of Barbados via Forex Online. The application should be supported by an Asset Declaration Sheet showing assets held in Barbados, and evidence that the applicant will be permitted to take up permanent residence in the new country. 

Foreign nationals who have resided in Barbados and are proceeding to take up permanent residence abroad will be given similar treatment.  

A Tax Clearance Certificate is issued by BRA detailing taxes due, payable and paid.

A Certificate of Clearance, also issued by BRA under the succession Act, section 28(3), is required for matters relating to the settlement of Estate.

Central Bank of Barbados’ permission must first be sought before setting up that business.